× Estate Planning: Why You Need It & How To Get Started Estate planning
is creating a plan to protect your assets and your family in the event of death or incapacity. A well-crafted estate plan can provide you with calm, knowing that it will take care of your loved ones and that your assets are distributed according to your wishes.
An estate plan typically includes a Will, which is a legal document that specifies the distribution of your assets after you die. You can also use a Will to appoint a guardian if you have minor children. In addition to a Will, other estate planning documents include trusts, Powers of Attorney, and advance directives.
Estate planning may sound complex, but it doesn’t have to be. Estate planning lawyers of Weiner Law can help you create a well-suited plan to protect your properties and take care of your loved ones when you’re gone. The Importance Of Having An Estate Plan
When you die, your estate goes through probate—a legal process that can be time-consuming and expensive. An estate plan can help you avoid probate and protect your assets after you die.
A well-drafted estate plan can also help your loved ones avoid conflict and confusion after you’re gone. Under California probate laws, the probate court will decide on the distribution of your assets if you die without a will. To skip probate, an estate planning attorney can help you create a customized plan that meets your unique needs.
In contrast to leaving it to the probate court to decide who gets what from your assets, an effective estate plan lets you give your property to whomever you wish. In simpler terms, estate planning gives you a unique kind of control over your property even after you pass away. It can also help minimize taxes and expenses and help provide for your loved ones if you become disabled or incapacitated.
You may want to create an estate plan independently, but working with an experienced estate planning attorney would be better. They have a deep understanding of California probate laws and have experience in complex estate planning strategies.
But before you jump into action and craft your estate plan, consider the following questions. What Assets Does Estate Planning Protect?
People often think of wills and trusts when it comes to estate planning. However, estate planning can protect many other assets.
Here are some examples:
Who Will Manage Your Estate After You Die?
- Retirement Accounts: If you have a retirement account, you can name a beneficiary to receive the money in the event of your death. This way, you can ensure that your loved ones are taken care of financially after you’re gone.
- Life Insurance: A life insurance policy can provide financial security for your loved ones after you pass away. They can use the proceeds to pay off debts, cover funeral costs, or provide for your family’s future needs.
- Investment Accounts: You can use estate planning to designate who will receive your investment accounts upon your death.
Regarding estate planning, many people mistakenly believe their loved ones will automatically inherit their assets after death. However, this is not always the case. Without proper estate planning, someone else may disburse your assets in ways you never intended.
One of the most important aspects of leaving a Last Will as part of estate planning is choosing who will manage your assets after you die. This person is called your executor. While many choose a family member or close friend to be their executor, sometimes it makes more sense to appoint an experienced estate planning attorney. Why? Because you will face complex decisions. Your loved ones may mean well, but only someone familiar with the law can help you make those difficult decisions.
Here are some intricate things a trusted attorney can assist you with during estate planning.
- Complex Estate. If you have multiple properties, businesses, or other assets, it may be best to appoint someone with the knowledge and experience to handle these matters.
- Young Children. If you have minor kids, you may want to appoint someone who can act as their guardian in the event of your death.
- Potential Conflicts Among Your Beneficiaries. If there’s a possibility that these conflicts will happen after you’re gone, you need someone outside your family to handle this matter. This way, your beneficiaries are assured that there are no biased decisions.
For all these matters, you need to choose the right executor to protect your assets. That way, you can be sure that someone you trust will distribute them according to your wishes. What Assets Do You Need To Consider In An Estate Plan?
When creating an estate plan, you need to consider three things: who will inherit your assets, who will pay off your debts, and what will happen to your business if you pass away. It is also essential to consider your funeral and burial arrangements.
These are sensitive topics, and talking about them with your loved ones can be overwhelming. Emotions may pour out even if they mean well. It is better to speak with a trusted estate planning attorney to help you make these decisions. They can create a comprehensive plan that fits your unique needs and situation.
If you have minor children, it is necessary to have an estate plan in place. You must designate a trusted person to care for your children after you pass away. Without an estate plan, the court will decide on who will raise them. So you must ensure everything is accounted for, even the unexpected things. What Are Some Common Estate Planning Mistakes?
As you age, you must start thinking about what will happen to your belongings and estate after you die. This thought can be daunting, and many put it off until it’s too late. But even with an estate plan, some common mistakes may still occur.
One mistake is not having a will in place. If you pass away without a will, state laws will supervise the distribution of your assets, which may not align with your wishes.
The second common mistake is failing to update your estate plan. As your life changes, so should your estate plan. If you keep your documents up to date, you can avoid having your assets distributed in a way that doesn’t reflect your current wishes.
Third, list down all your assets when creating an estate plan. Include your property, accounts, and investments in your estate planning documents. This way, you can avoid problems if there comes an accounting for all or some of your assets.
The last common mistake is not naming a trusted individual who will handle your affairs in the event of your death. This person should be someone you trust implicitly to carry out the conditions stated in your Last Will. That person should also know where you keep your legal documents.
Lack of preparation is one of the most significant estate planning mistakes. But as mentioned above, you need more than a trustee or executor during your estate planning
. You need an experienced estate planning attorney. Why? The Benefits Of Working With An Estate Planning Attorney
Estate planning lawyers can help you identify your assets and determine the best way to protect them. They can also help you understand the taxation of different estate planning options and ensure your plan complies with state and federal laws.
An estate planning attorney can help you save time and money by helping you choose the right estate planning tools for your unique situation. For example, they can help you evaluate if you need a Last Will, a Trust, or even both. They can also help you avoid probate and minimize taxes.
If you choose an experienced attorney focused on estate planning, you will have peace of mind knowing that your affairs are in order. They can help you use precise language that leaves no space for vague interpretations which may lead to probate litigation later.
They will help create a will, living trust, healthcare directive, and power of attorney now that you’re in your best health. They will also help you plan who will manage your financial affairs or medical care matters when you are no longer capable to do so. You can work with them in appointing someone you trust to make those decisions on your behalf. The Importance Of Protecting Your Assets Now
Estate planning is something everyone should consider, yet many people put it aside until it’s too late. You should never leave that decision to chance. You need an estate plan and a trusted attorney
who will create that estate plan with you. Weiner Law
is a highly respected estate law firm in San Diego, California. They can help you create wills, and trusts, and plan for probate administration.